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Excerpt from course description

Accounting and Direct and Indirect Tax

Introduction

The course will be divided into two main parts. The first part deals with accounting issues from a regulatory and economic perspective; while the second part deals with direct and indirect tax issues. Although accounting and tax often is considered as two separate parts, there is much interplay between these two branches of law.

Hence, the course will to a great extent integrate the two topics. This will be done for example by having seminars where we are analyzing interdisciplinary topics, and further some of the traditional lectures will be held together with lecturers specialized in accounting and lectures specialized in tax.

Accounting

The course consists of two major parts in accounting:

The first part is accounting regulation at Norwegian, European and International (IFRS) Level.  The students should understand the relationship between these three levels and also understand the basic measurement issues at all three levels.

Secondly, the course adopts a user’s perspective in reviewing accounting practices, procedures and disclosure requirements.  We will examine where to find the information and what it indicates about the structure, strategy and performance of the company.

Further, the course aims to give the students an understanding of the relationship between direct tax and accounting. Both disciplines base their regulation on an analysis of the same basic transactions. Even so, measurements of for example depreciations are treated differently under the two disciplines.

Direct and indirect tax

The course aims to give students a basic understanding of how to treat direct and indirect tax issues in trade and industry. In indirect tax, the course mainly focuses on Value Added Tax (VAT). The students will achieve good knowledge both about Norwegian tax issues, but also good knowledge about the most important issues in international tax. Under both domestic and international tax, the students will be trained in detecting and analyzing tax avoidance schemes. In addition to the juridical side of direct and indirect tax, the students will get a basic understanding of the economic effect of various tax systems.

Tax legislation has become increasingly extensive and technically complex, so that financial officers and accountants need to concentrate on learning direct and indirect tax law. In order to make appropriate choices between various financial alternatives, one must often understand the difficult interplay between the rules of accounting, company law, and direct and indirect tax law.

Course content

Accounting

  • The main elements and key topics in separate and consolidated financial statements prepared according to IFRS and in Norway
  • Explain the main elements of and key principles underpinning financial statement prepared according to IFRS and in Norway
  • Digitalization in accounting
  • The Annual Report Content
  • The Financial Statement Analysis Report
  • Financial Reporting Quality Analysis
  • Accounting Flexibility
  • Adjusting and Reorganizing Financial Statements
  • Profitability Analysis
  • Cash Flow Analysis

Direct and indirect tax

  • Tax liability in Norway
  • General company taxation, including e.g.
    • Depreciation for tax purposes
    • Exemption model
    • Shareholder model
    • Partnership model
    • Enterprise model
  • International aspect with Norwegian company taxation, including the relevance of tax treaties and the European Economic Area Agreement
  • The VAT principle and extent of obligation to pay duty
  • Withdrawal fee
  • Deduction for input VAT and adjustment
  • Definition of welfare, economic efficiency and optimal tax systems
  • The trade-off between efficiency and equity
  • Taxation and the price elasticity of demand
  • Taxation of emissions
  • Taxation of capital income and wealth

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.